Business
Strategy
Stanotex's business strategy is to enhance the Company's
value and create value for the investment community
primarily through the acquisition, development and production
of oil and natural gas reserves in areas that have:
Infrastructure.
A substantial existing infrastructure of oil and
natural gas pipelines and production/processing platforms;
- A geographic proximity to well - developed markets
for oil and natural gas;
Development and Production.
A large number of properties that major oil companies,
exploration-oriented independents and others consider
non-strategic; and a relatively stable history of
consistently applied governmental regulations for
oil and natural gas development and production.
Acquire Properties.
Management believes this strategy significantly reduces
the risks associated with traditional oil and natural
gas exploration. Unlike oil and natural gas companies
that primarily conduct exploration activities, managementís
focus is to acquire properties that have been previously
explored by others and found to contain current production
as well as yet unexploited proven reserves. During
the life span of these properties, they may become
"non-core" or "non-strategic"
to their original owners. Reasons that a property
may become "non-core" or "non-strategic"
are varied. For example, companies may elect to concentrate
their efforts elsewhere, to reduce their capital spending
for development, or to pursue exploration projects
as opposed to development projects. Companies that
are typically divesting of these types of properties
are large independent or major oil and gas companies.
Potential Opportunities.
Companies pursuing exploration success may discover
hydrocarbons, which may not provide an acceptable
economic return for their purposes; however, such
a project may prove attractive to Stanotex, because
the Company is not engaging in capital-intensive exploration.
If such a project were economically attractive, Management
could complete an evaluation and make a determination
whether to acquire the project. Each oil and natural
gas discovery by another company in the Company's
core area is a potential opportunity for the application
of this approach. Stanotex focuses on developing projects
in the shortest time possible between initial investment
and first revenue generated in order to maximize the
rate of return. The Company intends to operate the
properties in which a majority working interest is
acquired and begin a development program with proved
reserves. This strategy, combined with the Company's
ability to rapidly evaluate and implement a project's
requirements, allows us to complete the development
project and commence production as quickly and efficiently
as possible.
Feel free to if you are interested in learning more
about Stanotex, oil and gas investments and to discover
if investing in oil and gas is right for you.
